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Employees’ Provident Fund

Employees’ Provident Fund

Firstly, “The Employees’ Provident Funds Ordinance in 15th November 1952, to provide for the institution of provident funds for employees in factories and other establishments. It was replaced by the Employees’ Provident Fund Act, 1952. Employees’ Provident Fund bill introduced in Parliament in 1952. Now It is referred to as the Employees’ Provident Fund & Miscellaneous Provisions Act, 1952. The Act and Schemes framed there under are administered by a tri-partite Board known as the Central Board of Trustees, Employees’ Provident Fund, consisting of representatives of Government (Both Central and State), Employers, and Employees.

Employees’ Provident Fund & Miscellaneous Provisions Act, 1952

An Act to provide for the institution of Provident fund, Pension fund and Deposit-linked insurance fund for employees in any establishments. The Establishment with 20 to more persons are employed must be contributing to EPFO.

Three Schemes

EPF Scheme 1952

Employee’s contribution

Employer’s contribution

Employees’ Pension Scheme 1995 – EPS

Pension Calculation

Monthly member’s pension = (Pensionable salary x Pensionable Sevice) / 70

Pensionable Salary = average monthly salary in the last 12 months

Pensionable Service = actual service period of the member

Insurance Scheme 1976 – Employees’ Deposit-Linked Insurance Scheme (EDLI)

Claim Amount Calculation

{Average Monthly Salary of the Employee(death of the person insured) for the last 12 months (capped at 15,000/- p.m.) x 30 } + Bonus Amount (Rs. 1,50,000/-)

therefore, the maximum payout under EDLI is capped at Rs. 6,00,000/-

EPF, EPS and EDLI Contribution

Employee Contribution 12% Nil Nil
Employer Contribution 8.33% or Rs. 1,250/- 3.67% 0.50 or max Rs. 75/-
Deposit Limit Predetermined, fixed rate Maximum of Rs.1,250 NA
Age Limit for withdrawal Not required 1. 10 years of minimum service and 50 years of age for early pension. 2. 58 years of age for regular pension. NA
Interest Rate 8.5% p.a. NA NA

Important Links

Employees’ Provident Fund Organisation (


EPFO Press Release

228th meeting of CBT, EPF held at Srinagar, J&K Press Release – 04 Mar 2021

Voluntary Provident Fund

How to enrol in VPF




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